1990 (2) TMI 42

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....e of the Revenue, the Incometax Appellate Tribunal has referred the following question of law for the decision of this court : "Whether, on the facts and circumstances of the case, the Tribunal was justified in remanding the matter without considering the question whether the assessee is entitled to the benefit of section 80J for the entire period ?" The respondent is a private limited compa....

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....r held that, under rule 19A, the total value of the assets should be reduced by the liabilities of the assessee. The Income-tax Officer held that the entire capital has been taken from the head office and it should be treated only as a loan and so the assessee is not entitled to relief under section 80J of the Act. In appeal, the Commissioner of Income-tax (Appeals) held that the assessee is entit....

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....by rule 19A(3) or section 80J(1A) as wrongly interpreted by the Incometax Officer. Since there was no precise or definite data to show the extent of borrowals made in the new industrial unit, the Appellate Tribunal held that the matter required a recomputation of the capital employed in the new industrial undertaking in accordance with law. The matter was remitted to the assessing authority. In so....